Download Link for Energy & Power Vol 22 Issue 23 (May 16, 2025) as PDF/userfiles/EP_22_23.pdf

Bangladesh’s foreign exchange reserves are slowly bouncing back, buoyed by steady export earnings and remittances. With this breathing room, the government has begun easing its grip on the exchange rate, likely a move to meet IMF loan conditions. But while numbers on paper are improving, the reality on the ground tells a different story for industrialists. Across the country, factory owners—especially small and mid-sized businesses—are grappling with an unrelenting gas crisis and frequent power outages. Some have shuttered operations entirely; others, including major exporters, are teetering on the edge. Hopes were briefly raised when the Energy Adviser pledged 250 MMCFD of additional gas for industries. But weeks later, the pipelines remain dry. The situation is complex. Power plants, households, and fertilizer factories all need gas too. And the outdated transmission and distribution networks simply can’t keep up. Petrobangla says 100 MMCFD of LNG is on the way, but whether it’ll reach places like Gazipur or Savar, where factories are desperate for energy, remains uncertain. Long-term plans to boost local gas production and expand LNG capacity are delayed or downsized. Even if new wells are drilled on time, they may barely scratch the surface of demand.

Stopgap measures like rerouting gas bring only temporary relief and come at a cost elsewhere. Unless bold and urgent action is taken, the industrial gas crisis may soon undercut Bangladesh’s fragile economic recovery.

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